NY 2nd Month Sugar Futures
NY sugar futures sold off on Friday as protracted selling pressure prompted a break of support at 10 DMA to close on the back foot at 19.67. The stochastics are falling, edging closer to the oversold territory, and the MACD diff is negative and diverging, suggesting lower prices in the near term. The break of the key support level at 19.64 would suggest an appetite for lower prices. Secondary and tertiary support levels stand at 19.50 and 40 DMA at 19.24, respectively. If prices find support at current levels, this could prompt a recovery back above 20.00. In the medium term, we could see futures break back above trend resistance at 19.75. We anticipate prices to retreat in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures weakened on Friday, retracting strongly but still struggling to break below the 40 DMA level. The market closed at 547.40. The stochastics are falling once again, edging closer to oversold, and the MACD diff is also negative and diverging, pointing to a near-term decline in prices. The indicators outline the outlook for deteriorating prices, and Friday’s bearish engulfing candle suggests lower prices. Prices need to break below support at 40 DMA at 544.42 before targeting 540. This would suggest a longer-term bearish momentum. Conversely, if support below 540 can hold firm, this could trigger gains towards the resistance at 10 DMA at 551.15. A breach of this level would confirm the outlook for higher prices, with gains seen towards 560. In the longer run, prices need to break below the 40 DMA to confirm the downside momentum, but we expect prices to struggle below this level in the near term.
NY 2nd Month Coffee Futures
NY coffee futures struggled above the 194 level on Friday and edged lower as a result to close at 187.70. Today’s opening trade continued the trend, and we saw prices weaken to 187.70. The stochastics point to an end of upward momentum, with %K/%D converging on the downside out of overbought, and the MACD diff is positive and converging. This could set the scene for lower prices down to 10 DMA at 183.82 before 180. Alternatively, to continue the recent trend on the upside, futures would need to break above the 194 level, the recent high, before retesting 200. Prices have followed the upward trend in recent weeks, and we expect futures to struggle below the trend support in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower on Friday as moderate selling pressure triggered a close at 2151. The stochastics are converging on the downside and are now seen weakening out of the overbought territory; the MACD diff is positive and converging, accounting for the recent days’ weakness. A break of 2131 could trigger losses through 10 DMA at 2110, with the tertiary level at 2082. On the upside, a break above previous sessions’ highs at 2200 could set the scene for a test of 2221, pointing to a change of trend back for more bullish momentum. Friday’s spinning top formation points to market indecisiveness about the outlook for lower prices, and we need the futures to break support at 10 DMA to confirm the outlook.
NY 2nd Month Cocoa Futures
NY cocoa futures edged lower on Friday after prices failed above the previous day’s highs, prompting a close at 2748. The stochastics are converging, with %K/%D tailing off in overbought, and the MACD diff is positive and converging, confirming the outlook for lower prices. To confirm the bearish indicators, futures need to break below the support at 10 DMA of 2725 and then target 2700. On the upside, 2800 remained firm in recent days, and if the impetus on the upside resurges, this level could be targeted once again. We expect prices to weaken and test the 10 DMA in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures continued to edge marginally lower in recent days, and Friday’s candle body narrowed to close at 2116. The stochastics have been flat in recent days but are now showing signs of an accelerating downside trend. Likewise, the MACD diff is positive and converging, signalling that we might see prices lower in the near term. To confirm this, futures would first need to break the robust support levels at 2110 and 2100, respectively. On the upside, recent resistance at 2155 is holding firm, and a break above this level could see the price target new highs. The recent trend has been driven by marginal downside pressures, and we expect this momentum to continue in the near term.